May 30, 2014
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Valeant ups offer to acquire Allergan

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Valeant Pharmaceuticals has for the second time in a week revised its proposal to acquire Allergan, offering to exchange each Allergan share for $72 and maintain 0.83 shares of Valeant common stock, according to a company press release. The offer is an increase per share from $58.30 made earlier this week and is contingent on prompt good faith negotiations.

“Shareholders will continue to be able to elect cash and/or Valeant stock, subject to proration. Pershing Square, Allergan's largest shareholder with a 9.7% stake, has agreed to elect only stock consideration in the transaction,” the release said.

Based on closing stock prices of Allergan and Valeant on May 29, Pershing Square would exchange their Allergan shares for Valeant shares at a 1.22659 exchange ratio and receive no cash consideration, according to the release.

The proposal maintains the contingent value right for DARPin of up to $25 per share in value, which was part of the earlier proposal.

“We look forward to the Allergan board immediately entering into negotiations with Valeant and finalizing this transaction, Pershing Square CEO Bill Ackman said.